The employer did not remit Pag-IBIG contributions on time because payroll documents were submitted late, causing the amounts withheld from employees to be recorded in the wrong month. This is a recurring problem that shows weak internal controls and could lead to late payments of employee benefits.

Why It Matters

Recommended Actions

• Instruct the (a) HRMO to submit in a timely manner the required payroll documents to ensure timely processing and recording of transactions in the books, and (b) continue to withheld and remit intact premiums and contributions to the GSIS, PhilHealth, and Pag-IBIG pursuant to relevant laws.

Original Audit Finding Excerpt

"As can be seen from the tables above, monthly remittances did not match the withheld amounts. As in previous years, this is due to the late submission of the payroll documents for processing and recording in the books. The delay caused the premiums and contributions deducted from the payrolls for the 2nd half of the month to be recorded the following month. The recurring delay in the submission of payroll documents reflected lapses in the internal control over payroll."

Source Document